5 Reasons Why Auto Insurance Premiums Go Up

Posted on by Defensive Driving | in Defensive Driving Tips

We all know auto insurance is a necessity. However, sometimes premium spikes in insurance coverage seem to be unavoidable at times. As a result it has been advisable to shop around for the best rate on auto insurance you can find. Despite your best efforts, there are certain conditions that almost guarantee an auto insurance spike. Here are 5 reasons why insurance premiums go up:

Mercedes Benz cars in traffic

New Insurance Quotes

Auto insurance companies often quote one price and after crafting a policy the final cost is more than the quote. Why do automobile insurance quotes go up?

All auto insurance companies need to assess and balance the risk-to-reward ratio. Insurance companies assess profitability based on a potential customer’s driver record and habits.

Dodge Charger 2018 Dashboard

Insurance Quotes for New Vehicles

The value of a new car is more than that of an older vehicle. It stands to reason that replacing the newer model will be more expensive than replacing an older vehicle. When purchasing a new vehicle you should expect to see a rise in your insurance premiums.

Automobile insurance carriers use a combination of factors to attempt to give you a new vehicle insurance quote. They look at your driving record, vehicle make, model year, occupation and credit history. If the insurance carrier qualifies you as low-risk you will see low rates, comparatively speaking. Brushes with the law, and a poor credit history means a higher than average insurance quote.

In addition to the aforementioned, if you lease or finance a new vehicle, most lenders and state laws require full insurance coverage.

Moving Further Away From Work

The idea here is that the further you have to drive to work, the greater the risk that you could get into an automobile accident. If your employment requires frequent driving it may also add to your monthly auto insurance premiums.

Single vs. Married

Auto insurance providers categorize policy holders based on their marital status. Insurance companies categorize single individuals as high risk investments. Married customers with children are considered a lower risk.

Traffic Violations

Auto insurance companies frequently scan for any recent traffic violations and citations. If they learn of any misconduct or pending cases for moving violations you might see a one to two year premium spike.

|

Customer Reviews

Defensivedriving.com has a ShopperApproved rating of 4.7 based on 102294 ratings and reviews.

Stuart TX, United States
Easy sign up and all information is readily available. Found the site to be user friendly.
Jonathan
Fast easy and friendly.
Eliza
Quick and easy so far, so good!
Jake
Intuitive and simple interface. Great stuff.
Tracy TX, United States
perfect
Dalton United States
GREAT
Maddie TX, United States
super easy and quick
April
super quick and easy
Priscilla
Smooth process
Rachel
Quick and Easy!
Daniel
User friendliness, Easy to follow steps
Rohan
This is quick and easy
Cynthia
Fast and easy
Elsa TX, United States
Easy to navigate and access
Latonya
Very quick
Melvin
Fast
gerald United States
Great and easy
Margarita United States
Great courses. They are easy and very helpful.
Kendell
Right to the point!
Denise
Excellent instructions
Samantha TX, United States
pretty quick and easy
Bobby United States
Great stuff
jordan
Easy and great lessons
See all reviews on shopperApproved.com
Why DefensiveDriving.com
  • 20 Years in Business
  • Over 2 Million Customers Served
  • Highest Possible Better Business Bureau Rating
  • Award Winning Course